Thursday, March 13, 2014

BI in the Airline Industry

Airlines are an industry that is known to leverage BI to its advantage. As discussed in the Data Warehouse Toolkit, the following is an airline’s bus matrix:

Over the next few years, airlines are planning on investing in information systems that will enable them to get to know their passengers better and deliver customized services to them. According to the 2013 SITA/Airline Business IT Trends Survey, all respondents to the survey said that they plan to invest in business intelligence (BI) solutions which will allow them to know more about their customers and have better information for decision making in their operations

Airlines are also investing in BI to improve operations and boost revenues. Similar to the retail industry, there is a strong desire to increase revenues using personalization. Nearly three quarters of airlines rate business intelligence for sales and marketing as a high priority.

Another innovative usage of BI in the airline industry is the optimization of fuel consumption. Mahindra Satyam. The IT services company is using its software framework to help some airlines save on fuel consumption. For example, it is helping a major Asia-Pacific airline through advance algorithms crunching several hundred thousand parameters and permutations to see how it can reduce fuel costs and meet tough EU emission requirements.

References:

Ralph Kimball, M. R. The Datawarehouse Toolkit: The Definitive Guide to Dimensional Modeling, 3rd Edition

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